Budget Bill update

Many hurdles remain as the U.S. Congress continues debating the next budget bill. An immediate need is for Congress to pass a rail bill, after President Biden asked congressional leaders to avert a rail strike by passing legislation. House Speaker Nancy Pelosi (D-CA) said “the House will consider legislation adopting the tentative (rail) agreement reached […]

IRS warns on holiday scams

The holiday season is in full swing, and so are scams, warns the IRS. Con artists target taxpayers, possibly posing as IRS agents trying to collect bogus tax bills. They often demand payment by gift cards. Scammers may also claim a taxpayer’s identity has been stolen and used for criminal activity. These scams are usually […]

Student Loan Payment pause extended

A student loan payment pause is extended through June 2023. On Nov. 22, President Biden announced that the U.S. Dept. of Education is extending the pause on student loan payments while Biden’s student loan relief plan is on hold following court rulings. The Biden Administration is asking the U.S. Supreme Court to take up the […]

Increased regulation of cryptocurrency coming soon

The federal government will soon be increasing its regulation of cryptocurrency. Starting in January 2023, crypto brokers must observe new tax reporting requirements. These include providing investors with IRS Form 1099-B, which documents crypto profits and losses. Buying crypto generally isn’t taxable. However, trading it, converting it to cash and using it for purchases, may […]

Did someone say government shutdown?

The race to fund the federal government and avert a Dec. 16 shutdown is on! Or not. Differences between Democrats and Republicans over spending amounts and policy wavers have brought budget negotiations to a near-standstill. Democrats back an expansion of the Child Tax Credit and are trying to entice Republicans with business tax breaks, including […]

Discussion on IRS responsiveness and accessibility

The U.S. Treasury Department recently conducted another roundtable discussion on how to improve accessibility and service quality at the IRS. These series of discussions are intended to help the IRS develop a strategic plan to modernize tax administration. Specifically, the conversation focused on the challenges underserved taxpayers face when trying to communicate with the IRS. […]

Legislation introduced on AOTC

A bipartisan group of lawmakers have reintroduced legislation that allows individuals with felony drug convictions the right to claim the American Opportunity Tax Credit (AOTC). Under current law, students with such drug convictions are permanently barred from claiming the AOTC for higher education. The Eliminating Discrimination and Creating Corridors to Expand Student Success (ED ACCESS) […]

Illinois disaster relief granted

The IRS is providing disaster tax relief to victims of severe storms and flooding in St. Clair County, Illinois, between July 25, 2022 and July 28, 2022. Affected taxpayers also include those who were there as part of official relief efforts or visiting the area and were killed or injured by the disaster. The IRS […]

Whirlpool’s appeal request goes down the drain

The U.S. Supreme Court has refused a request by appliance manufacturer, Whirlpool to review a long-standing case. At issue is the treatment of Whirlpool’s 2009 earnings from its Luxembourg controlled foreign corporation, and whether branch rules applied to the income or U.S. Treasury regulations that taxpayers have relied upon for decades. In a tax blog, […]

State officials in talks about how to prevent personal property tax spikes

State officials in talks about how to prevent personal property tax spikes – KSDK.com https://bit.ly/3UmP3b1